Kootenay Silver Inc. (TSX-V:KTN) offers investors exposure to a highly undervalued portfolio of high-grade advanced exploration projects backstopped by 281 million plus ounces of existing silver equivalent resources, according to Red Cloud Securities analysts.
In a note to clients, they initiated coverage of Kootenay Silver shares with a ‘Buy’ rating and a C$3.50 per share target price, implying 180% upside from current levels.
"We also believe there is excellent potential to delineate a large, high-grade maiden resource at Columba to add to this resource base and that further drilling could lead to resource expansion," the analysts wrote.
They stated that Kootenay is undervalued on an Enterprise Value to Ounces basis at US$0.14 per ounce silver equivalent compared with US$0.42 per ounce for its peers and believe positive drilling results and a maiden resource estimate at its Columba project in Mexico could potentially help close this valuation gap.
Analysts at Red Cloud also pointed to upcoming catalysts for Kootenay Silver stock that include drill results and a maiden resource estimate for Columba as well as a potential updated estimate for its La Cigarra project in 2024.
They added that a rising silver price environment also bodes well for Kootenay as the number of primary silver mines is projected to decline after 2026.
Contact Sean at sean@proactiveinvestors.com